Description
In the Excel file you will find a model of a producer of products of hand-made ceramic tiles. You will see in the Excel model how to generate Profit and loss statement, Balance sheet, Cash flow as well as how to value the company using DCF and multipliers method.

As a business analysts or a consultant you will have to from time to time create financial models. There are a bit different than business models. In business models you go into details of operations and you focus on getting the links on the KPIs. Those models are usually done for internal purposes, to manage in the right direction the business. Financial models on the other hand are more for external users. You concentrate in them on creating the picture of the business in a standardized, understood by everybody way. You also want to create the financial statements: profit & loss statement, balance sheet statement, cash flow statement. On top of that you use the financial statements for valuation purposes. The most typical situation when, as a business analyst or a consultant, you will have to prepare such a model are connected with selling or purchasing a company. You may be doing it on the sell side or on the buy side. Financial modeling is done as a part of strategy projects, turn around projects, due diligence. Some details on working capital generation can be found in the attached video to this model. Enjoy!